Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CCG 2015 Industry Shopper Study

4,207 views

Published on

  • You might get some help from ⇒ www.WritePaper.info ⇐ Success and best regards!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Looking For A Job? Positions available now. FT or PT. $10-$30/hr. No exp required. ★★★ http://t.cn/AieX6y8B
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • If you want to download or read this book, copy link or url below in the New tab ......................................................................................................................... DOWNLOAD FULL PDF EBOOK here { http://bit.ly/2m6jJ5M } .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • If you want to download or read this book, Copy link or url below in the New tab ......................................................................................................................... DOWNLOAD FULL PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

CCG 2015 Industry Shopper Study

  1. 1. Seize the “Moments that Matter” Industry Shopper Study 2015 PATH TO PURCHASE
  2. 2. – 2 – 2015Industry Shopper Study ©2015 Cadent Consulting Group. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and/or retrieval system without permission from Cadent Consulting Group. 44 Old Ridgefield Road, Ste. 235 Wilton, Connecticut 06897 1 Northfield Plaza, Ste. 300 Northfield, IL 60093 203-529-3701 www.cadentcg.com Price: $500 TABLE OF CONTENTS Overview............................................................................................3 Executive Summary.........................................................................6 Key Findings......................................................................................8 Shopper Marketing Path to Purchase Moments That Matter Organizing for Success.................................................................23 Action Plan...................................................................................... 29
  3. 3. Industry Shopper Study2015 OVERVIEW
  4. 4. – 4 – 2015Industry Shopper Study Who is Cadent Consulting Group? Cadent Consulting Group, established by the founders and senior leadership team from Cannondale Associates, is a marketing and sales management consulting firm serving the Consumer Packaged Goods (CPG) and Retail industries. We offer a broad array of information, insights, capabilities and expertise across the manufacturer, retailer and shopper spectrums. CADENT CONSULTING GROUP OVERVIEW Spending Productivity 3D Pricingsm Industry Benchmarking Organization Design & Training Customer Segmentation/ Channel Development Growth Accelerators GROWTH & OPTIMIZATION Category Leadership Shopper Insight Spending Productivity 3D Pricingsm Industry Benchmarking Organization Design & Training Customer Segmentation/ Channel Development Growth Accelerators Category Leadership Shopper Insight Mission Our mission at Cadent is to help our clients drive growth & profitability while optimizing investment and organization productivity. We aim to translate insights into competitive advantage for our clients.
  5. 5. – 5 – 2015Industry Shopper Study Research Objectives/Methodology Cadent Consulting Group’s management team, while at Cannondale Associates, published the first Category Management/Leadership Industry Study in 1994 closely followed by the Trade Promotion Industry Study in 1995 and the annual PoweRanking® Study in 1997. Over twenty years of experience in category management, trade promotion, shopper insight and industry best practices has deepened our knowledge and expertise across manufacturers, retailers and shoppers. Inclusion of shopper responses is a totally new component to our traditional manufacturer/retailer studies. Enhancing manufacturer and retailer perspectives with an understanding of the real boss – the shopper – adds significant insight to the study. The objective of the Industry Shopper Study is to evaluate what really matters to convert shoppers into buyers. Do shoppers follow a strict, regimented Path to Purchase for routine, low-ring items? Or is it simply a question of a moment or moments that really matter? Why the Shopper? In our previously released 2014 Marketing Spending Study we identified that marketing spending represents nearly $225 billion in annual expenditures by CPG manufacturers, or 20.6% of sales. We also noted that shopper marketing spending had doubled to 13.5% of the overall marketing budget since 2012. Are these expenditures hitting the mark? The specific goals of this research were to: • Assess the fastest growing spending component, Shopper Marketing • Understand the evolution of the Path to Purchase and its current state today • Identify what really matters to shoppers, retailers and manufacturers • Determine the optimal organizing principles given an integrated manufacturer/ retailer/consumer and shopper framework Study Methodology Over 1,000 manufacturer, retailer and shopper participants were surveyed online with customized questionnaires. Selected in-depth, 1-on-1 follow-up interviews were completed to gain a better understanding of Shopper Marketing spending and effectiveness. CADENT CONSULTING GROUP OVERVIEW Manufacturers Retailers Shoppers
  6. 6. Industry Shopper Study2015 EXECUTIVE SUMMARY
  7. 7. – 7 – 2015Industry Shopper Study • Shopper Marketing: This marketing spending component has more than doubled since 2012 from 6% to 13.5% of the total marketing budget. This equates to an increase of over $17 billion specifically targeted at the shopper. We believe, however, that this may be the high water mark as costs begin to outweigh benefits. While other marketing spending components such as traditional advertising, consumer promotion, trade promotion and digital may also incorporate the shopper, shopper marketing is specifically designed and focused on converting shoppers into buyers. • Path to Purchase Perspective: Shopper Marketing has grown in tandem with the Path to Purchase construct. In its simplest state Path to Purchase incorporates the genesis of demand and the evaluation of options including outlet, navigation of the store and purchase decision. It has served as a useful model for understanding shoppers and guiding marketing investments. Recent Path to Purchase models have increased in complexity by incorporating a more complete purchase cycle and multiple feedback loops through digital. • Path to Purchase Today: Cadent Consulting Group conducted research in 2014 incorporating 4,000+ discrete purchase experiences. We found that while the Path to Purchase is a useful construct, it is a bit of a misnomer and typically it is only a point or moment along the cycle that stimulates primary awareness and/or influence to buy. The concept of a complete Path to Purchase cycle for an individual product purchase, while intriguing, rarely meshes with reality. • Moments That Matter: This construct integrates the consumers, shoppers and customers. • Consumers: What do they want? What is the need state or occasion that really matters? • Shoppers: How do they shop? Where are the points of influence that affect awareness and purchase? • Customers: At what retail channels or specific outlets do they seek insights or make a purchase? • The Barbell: Our analysis of discrete points of influence during the purchase process indicates a “barbell effect.” Over half of purchase awareness and influence is generated at home before going to the store and approximately 30% is generated in the aisle or section. While there are core differences by category and product, the actual moments that matter typically occur at either end of the shopping trip: at home or in the aisle. • Organizing for Success: Over the past two decades individual silos have been created between traditional marketing and sales that have added cost and complexity. These include shopper marketing, shopper insights, category management, trade marketing, sales planning, customer marketing, trade promotion, digital, etc. However, isn’t it all one marketing dollar that is being spent to influence both awareness and purchase? Organizing for success means a more streamlined, focused organization targeting the consumer/shopper and moments that matter. Internal communication within a single group can be challenging; communication across multiple functional silos increases complexity exponentially. We recommend placing omni-channel/digital at the “head” of your organization and the consumer/shopper at the “heart.” • Action Steps: How can you best identify, segment, target and organize against the moments that matter to convert shoppers into buyers in your category or your store? Seize the “Moments that Matter.” EXECUTIVE SUMMARY: “SHOPPER”
  8. 8. Industry Shopper Study2015 SHOPPER MARKETING
  9. 9. – 9 – 2015Industry Shopper Study SHOPPER MARKETING SPENDING: 2012/2014 Shopper Marketing is targeted at converting shoppers into buyers. While not the only budget component to address this goal, it is the one specifically dedicated to shopper/ buyer conversion. The Shopper Marketing budget has grown from 6.0% to 13.5% of all marketing spending over the past two years or an increase of over $17 billion. While this increase was not fully incremental and funds were often sourced from more traditional marketing spending including trade promotion, advertising and consumer promotion, the growth was unprecedented when tracked over 20 years. The goal of shopper marketing is to convert shoppers into buyers based upon specific insights that target shoppers as they progress along the Path to Purchase. Is this reality? Or is shopper marketing just a new term for account-specific marketing, co-marketing, customer marketing or account menus? Ideally shopper marketing is based upon shopper insights to address needs/wants and customized to convert shoppers into buyers. However, many shoppers simply don’t care or don’t value the message. MANUFACTURER – Marketing Spending by Type (% of Budget) Shopper Marketing and Digital are the growth drivers in marketing spending. Trade Promotion 49.8% Trade Promotion 43.9% Shopper Marketing 6.0% Shopper Marketing 13.5% Digital 7.1% Digital 12.5% Traditional Advertising 25.4% Traditional Advertising 22.2% Traditional Consumer Promotion 11.7% Traditional Consumer Promotion 7.9% 2012 2014
  10. 10. – 10 – 2015Industry Shopper Study SHOPPER MARKETING: TRUE GROWTH OR A PROXY FOR TRADE PROMOTION? MANUFACTURER – Shopper Marketing Spending by Vehicle (% of Budget) Overall growth more than doubled, but there were only subtle changes in the mix by vehicle. RETAILER – How Effective is Manufacturer Shopper Marketing by Vehicle in Generating Sales? (% Effective/Very Effective) SHOPPER – How Effective is Shopper Marketing on Impacting Shopper Awareness/Purchase decisions? (% Effective/Very Effective) Retailers favor in-store events, retailer specific coupons and fixtures as the top drivers in Shopper Marketing. Shoppers tend to favor retailer coupons and merchandising. Retailer Specific Merchandising Fixtures 35.3% Retailer Specific Merchandising Fixtures 35.5% Retailer Specific Merchandising Fixtures Retailer Specific Merchandising Fixtures In-Store Advertising 15.7% In-Store Advertising 15.9% In-Store Advertising In-Store Advertising Retailer Specific Coupons/Offers 20.6% Retailer Specific Coupons/Offers 18.6% Retailer Specific Coupons/Offers Retailer Specific Coupons/Offers In-Store Events 14.2% In-Store Events 16.2% In-Store Events In-Store Events Sampling/ Demos 8.3% Sampling/ Demos 9.0% Sampling/Demos Sampling/Demos Other 5.9% Other 4.8% 89% 27.5% 24.4% 23.2% 16.0% 15.2% 12.2% 13.7% 12.8% 11.5%12.2% 89% 87% 78% 67% Generating Awareness Influence on Purchase 2013 2014
  11. 11. – 11 – 2015Industry Shopper Study Manufacturer Perspectives: Shifting In-Store • “We need to get better at winning in-store. That’s what our shopper marketing is all about.” • “We’re shifting from brand awareness to retail shelf presence in the competitive environment.” • “We want to have more focus on in-store merchandising to capture buyers in the department vs. out of store advertising.” • “We’ve had to shift to more retailer-specific programs targeting the consumer who shops in that specific retailer.” • “We’re looking to test some in-store TV to gain additional displays.” Retailer Perspectives: Customized • “The more relevant these vehicles are to the shopper, the more effective they will be.” • “Delivery of the right value proposition to the consumer determines the effectiveness.” • “Retailer specific coupons can help drive loyalty to a particular retailer and if that retailer captures information about the shopper who uses that coupon and then customizes future offers for that shopper… that can be very effective for both the retailer and the manufacturer.” • “We want manufacturer suppliers spending their money with us.” • “Our focus is on our frequent shopper card.” • “Sampling tends to be a one day event and can miss a lot of shoppers.” Shopper Perspectives*: Product, Effective, Buy, Store, Coupons *Note: Most common “words” in response to open ended question on Shopper Marketing effectiveness. SHOPPER MARKETING: TRUE GROWTH OR A PROXY FOR TRADE PROMOTION? Shopper Marketing is all about winning in store. Manufacturers often just pay lip service to brand equity building initiatives. Shopper Marketing echoes common themes. The focus is on delivering value in a challenging economy. Customized and personalized retailer offers can help all parties.
  12. 12. Industry Shopper Study2015 PATH TO PURCHASE
  13. 13. – 13 – 2015Industry Shopper Study PATH TO PURCHASE – 2005-2010 The term “Path to Purchase” conjures up just as many images as it does organizational go-to-market approaches. In its simplest state the Path to Purchase incorporates the genesis of demand and the evaluation of options including outlet, the navigation of the store and the purchase decision. Alternative models focus on a Pre-Shop/Shop/Post- Shop process flow or an Awareness/Influence/Purchase/Post-Purchase flow. Frequently incorporated into the traditional Path to Purchase is the actual consumption, or usage, component. Initially most Path to Purchase constructs relied on a linear orientation. This assumed that shoppers made rational and sequential decisions without significant behavior modification or feedback loops. While simplistic, this was an effective way to embed the idea that shopper insights and shopper marketing were all about converting shoppers into buyers. FROM HERE: Linear, clear, focused… Goal: Convert shoppers into buyers. DEMAND GENERATION OUTLET SELECTION STORE NAVIGATION PRODUCT PURCHASE
  14. 14. – 14 – 2015Industry Shopper Study PATH TO PURCHASE EVOLUTION – 2011-2014 Digital has disrupted the original linear model and created a continuous feedback loop with numerous interactive intermediations. More recent Path to Purchase models have increased in complexity incorporating the base Pre-Shop, Shop and Post-Shop components. The addition of digital/mobile now ensures that insight is always within a keystroke. External influence factors including medical (Pediatricians, Eye Care professionals), government (WIC), etc. have also added significant complexity depending on the product category. TO HERE: Digitally enhanced feedback loop with continuous purchase cycle Who actually shops for routine CPG items like this? Is it really this complex? Consumption/ Usage Demand Generation Outlet Selection Navigation Item Selection • WHO – For Me, Family • WHAT – Item/Occasion/Selection • WHEN – Immediate Use/Stock-up • Behavioral Impact • Brand Advocacy • Social Media • WHERE – Store Drivers • WHY – Trip Missions • In Aisle • At Section • Shelf; Assortment; Pricing/Promotion • At Store • In Store • To Aisle PATH TO PURCHASE
  15. 15. – 15 – 2015Industry Shopper Study THE ROLE OF DIGITAL/MOBILE Digital/Mobile has now totally surrounded the Path to Purchase and Shopper Marketing can engage shoppers whenever and wherever they are most ready to buy. Digital/Mobile has changed the game in terms of targeting shoppers, identifying what they want and how retailers meet their needs. Digital intermediation can impact anywhere in the demand cycle and its power is in its ability to transcend venues via mobile. Shoppers can evaluate online (webrooming) or in store (showrooming) and purchase anywhere. The digital components evaluated in this study include: websites, social media, search engine optimization and online coupons, among others. Digital intermediation often requires some shopper effort, but ultimately reduces sources of friction for the buyer. Better information, better prices and improved selection are all benefits of digital intermediation. Digital/Mobile has added another dimension to the Path to Purchase. DIGITAL/MOBILE “Changing the Game” RETAILER Meet Shopper Needs CONSUMER Who They Are SHOPPER What They Want
  16. 16. Industry Shopper Study2015 MOMENTS THAT MATTER
  17. 17. – 17 – 2015Industry Shopper Study MOMENTS THAT MATTER The Moments that Matter construct integrates a specific understanding of the key points of awareness and influence. The three key factors are: • Consumers: What do they want? What is the need state or occasion that really matters? • Shoppers: How do they shop? Where are the points of influence that affect awareness and purchase? • Customers: At what retail channels or specific outlets do they seek insight or make a purchase? Identify the Moments that really Matter for your category/brand. SHOPPER SEGMENTSHow They ShopPoint of Influence What They Want Occasion CONSUMER SEGMENTS WhereTheyGo CUSTOMERS Who? How? What? When? Where? Why?
  18. 18. – 18 – 2015Industry Shopper Study MOMENTS THAT MATTER: SEGMENT CONSUMERS/SHOPPERS/CUSTOMERS Let’s take a look at hypothetical consumer segments and how they might think about food, as an example, as well as shopper and retailer implications. How can you understand how to better target your segments? Example “I am what I eat.” “Fast and frequent.” SHOPPER SEGMENTS What They Want Occasion CONSUMER SEGMENTS WhereTheyGo CUSTOMERS How They ShopPoint of Influence Consumer Quantity over quality • Filling • Tastes great • Satisfies me Shopper • Center store loyal • Big sale buyer Retailer • Value outlet focused Consumer Health & wellness • No fat • High nutrition/protein • Probiotics Shopper • Influenced by facts – what I read Retailer • Natural food stores • Retailer organic sections
  19. 19. – 19 – 2015Industry Shopper Study MOMENTS THAT MATTER: UNDERSTANDING THE SHOPPER Our shopper-based approach to Moments that Matter integrated 30+ demand stimuli with distinct venue and timing considerations as well as the impact of awareness and influence on purchase. These factors represent the “what,” the specific demand stimuli, touchpoints or “Moments that Matter.” Other factors including who, when, where, why and how are also considered. With marketing touchpoints growing exponentially – fueled by Shopper Marketing and Digital offerings – there is truly a need for manufacturers and retailers to “identify the controlling elements.” Below are the Points of Influence that were considered. While by no means exhaustive, we believe they are representative of the major options available to most manufacturers and retailers today. Advertising Consumer Promotion Trade Promotion Digital Shopper Marketing MANUFACTURER • Manufacturer television commercial • Manufacturer magazine advertisement • Manufacturer radio advertisement • Newspaper insert coupon • Coupon for the product mailed to your home • Coupon for the product received in-store • Both store flyer/ circular and product display • Store flyer/circular received at home or in the store • Product display • Sale/price reduction at the shelf • Manufacturer mentions in internet search results • Manufacturer banner ads • Manufacturer ads in social media • Manufacturer website • Emails from manufacturer • Manufacturer online coupons • Manufacturer mobile app RETAILER • Retailer television commercial • Retailer magazine advertisement • Retailer radio advertisement • Coupon for the product mailed to your home • Coupon for the product received in-store • Retailer mentions in internet search results • Retailer banner ads • Retailer ads in social media • Retailer website • Emails from retailer • Retailer online coupons • Retailer mobile app • In-store events • Retailer-specific section signage • Product sampling or demonstration • Retailer-specific coupons/offers • Retailer customized advertising
  20. 20. – 20 – 2015Industry Shopper Study MOMENTS THAT MATTER: TARGET COMMON SHOPPER MOMENTS ON THE PURCHASE CYCLE Our research integrated over 4,000 discrete shopping occasions and helped identify the most common Moments that Matter. The results were highly illuminating. Path to Purchase is a misnomer and Moments that Matter is more appropriate. These are the most common Moments that Matter on the purchase cycle. Most of these “Moments” are simply one point in time, while a few are sequentially linked. While these are the most common, we should note that there is significant variability by category, messaging, timing and availability of marketing vehicles. All media types impact purchase decisions from online to TV to trade promotion. Seize the “Moments that Matter” for your key consumer, shopper and customer segments. Most Common Moments That Matter on the Purchase Cycle At Home Before Going to Store Navigation in Store At Section 1 A sale/price reduction at the shelf 2 A newspaper insert coupon 3 Sale/price reduction near the shelf 4 Manufacturer television commercial 5 Store flyer/circular received at home 6 Manufacturer online coupons 7 Product display 8 Product display 9 Product display and price reduction at the shelf 10 Newspaper insert coupon Store flyer/circular received at home or in-store 11 Coupon for the product mailed to your home and a newspaper insert coupon 12 Coupon for the product received in-store 13 Coupon for the product mailed to your home Store flyer/circular received at home or in the store 14 Manufacturer online coupons
  21. 21. – 21 – 2015Industry Shopper Study MOMENTS THAT MATTER: TARGET THE RIGHT SHOPPER POINTS OF INFLUENCE While there are many vehicles, timing and venue considerations, we have conducted an analysis of the different demand stimuli on a quadrant of “Aware” and “Care,” with “Care” representing influence on purchase. Those marketing touchpoints in the upper right quadrant are the ones that shoppers are more aware of and influenced by. While this is not true for every category or marketing objective, this provides a general direction and illustrates the importance of Trade Promotion and Consumer Promotion, as well as the growing influence of Digital and Shopper Marketing. Of note, the Digital factors have presence across all four quadrants but 65% of the Digital touchpoints were in the “Not Aware and Don’t Care” quadrant. This may be due to the immense fragmentation in digital media or lower overall effectiveness. Indexed Factors 150 – 50 100 150 200 250 140 130 120 110 100 90 80 70 60 50 Manufacturer online coupons Coupon for the product received in-store Sale/price reduction at the shelf Newspaper insert coupon Store flyer/circular received at home or in the store Retailer-specific coupons/offers Both a store flyer/circular and a product display Coupon for the product mailed to your home Retailer online coupons Emails from retailer Retailer-specific section signage Retailer customized advertising Product sampling or demonstrations Manufacturer radio advertisement Emails from manufacturer Manufacturer mobile app Retailer radio advertisement Retailer ads in social media Manufacturer ads in social media Manufacturer banner ads Retailer banner ads Manufacturer magazine advertisement Retailer mentions in Internet search results Manufacturer mentions in Internet search results Retailer mobile app Retailer magazine advertisement Retailer television commercial Retailer website Manufacturer television commercial Product display Manufacturer website In-store events Aware But Don’t Care Not Aware and Don’t Care Aware and Care (Influenced By) Not Aware But Care Aware Care
  22. 22. – 22 – 2015Industry Shopper Study MOMENTS THAT MATTER: LEVERAGE THE BARBELL EFFECT Further analysis of these 4,000 shopping occasions and key Moments indicates that there is a significant “barbell” in the purchase decision process. At-home before going to the store communication has direct awareness and influence on 53% of purchases, while in-aisle/section influences 29% of purchases. We have segregated the key awareness and influence factors on purchase into two tiers indicating relative importance. Before going to the store, all five marketing types play a role: Consumer Promotion, Advertising, Trade Promotion, Digital and Shopper Marketing. In the store, the primary emphasis is on Trade Promotion (Pricing and Displays) with Shopper Marketing (Retailer Signage) as a supplement. There were no singular awareness/influence factors occurring either at the store before entering or in-store before entering the aisle. Focus on “Home” and “Aisle/Section” with the right marketing touchpoints to stimulate awareness/purchase. Points of Influence % Awareness/ Influence on Purchase 53% 8% 10% 17% 12% Key Factors: TIER 1 • FSI • Store Flyer/ Circular • TV Ad • Direct Mail Coupon • Retailer Specific Coupon • Retailer Online Coupon – – • Sale/Price Reduction • Display • Sale/Price Reduction • Display TIER 2 • Retailer Website • Manufacturer Online Coupon • Retailer Email – – • Retailer Signage – ALL SPENDING TYPES TRADE PROMOTION/ SHOPPER MARKETING At Home Before Going to Store At Store Before Entering In Store Before Entering Aisle In Aisle At Section PRE-SHOP SHOP
  23. 23. Industry Shopper Study2015 ORGANIZING FOR SUCCESS
  24. 24. – 24 – 2015Industry Shopper Study FUNCTIONAL SILOS ADD COMPLEXITY AND COSTS Is your organization structured to capture vital shopper moments? Most organizations are functionally siloed and ostensibly address the Path to Purchase through shopper insight and shopper marketing. The current environment, however, is one where investor pressures are forcing companies to cut costs to the functional bone with zero-based budgets. We believe identifying, segmenting and targeting Moments that Matter with the right organization structure is where winning companies will evolve. For example, solutions can be focused against: What – the occasion, Who – the target, Where – retailer/other venue, and When – at what moment. • Organization complexity encumbers communication and decision making. “The single biggest problem in communication is the illusion that it has taken place.” – George Bernard Shaw • Understanding what really works across the marketing and sales spectrum is much more feasible when minimizing functional and communication silos and bottlenecks. The marketing budget should be thought of as one fund, not separate buckets. Integrating the organization can optimize your marketing dollars and better target the Moments that Matter. Organize to address the Moments that Matter. TODAY SITUATION SOLUTIONS President Marketing Sales Digital Shopper Marketing Consumer Retailer Shopper Consumer Research Shopper Insight Category Manage- ment Trade Promotion Planning
  25. 25. – 25 – 2015Industry Shopper Study ORGANIZATIONS ARE UNDER PRESSURE OVERALL ORGANIZATION PERSPECTIVES “Our growth has flatlined; do I eliminate staff or restructure?” – Mid-sized Food Manufacturer “It’s an example of Parkinson’s Law. We add more functions and staff; we add more work, complexity and challenges.” – Beverage Company SHOPPER MARKETING PERSPECTIVES “We are cutting back our department and focusing more on national promotions. They are easier to execute.” – Large Center Store Manufacturer “Our plan is to refocus the Shopper Marketing department away from brick & mortar to online and digital.” – HBC Manufacturer “We are redeploying and targeting retailers with specific solutions which could include trade promotion, shopper marketing and digital.” – Major Total Store Food Manufacturer It’s all marketing…so what’s the right organization?
  26. 26. – 26 – 2015Industry Shopper Study INTEGRATED MARKETING ORGANIZATION An integrated marketing organization must begin and end with the consumer/shopper while reflecting the needs of manufacturers and retailers. Internal functional groups to complement marketing and sales should be better integrated. Consumer/Shopper-Centric Organization Sales/Marketing Integrated Marketing Retailer Consumer/ Shopper
  27. 27. – 27 – 2015Industry Shopper Study ORGANIZATION VISION: DIGITAL “HEAD” AND CONSUMER/SHOPPER “HEART” • Consumer/shopper-centric “heart” • Informed by a digital/omni-channel “head” Break down hierarchical structures and create a consumer/shopper-centric organization. DIGITAL/ OMNI-CHANNEL CONSUMER/ SHOPPER PRESIDENT SALES CATEGORY LEADERSHIP MARKETING INSIGHTS • Revenue management • Trade promotion • Net sales • Online • Mobile • Integration • Demand generation • Needs satisfaction • 4Ps • P&L • Category management • Shopper marketing • Consumer • Shopper • Category
  28. 28. – 28 – 2015Industry Shopper Study ORGANIZATION “SWEET SPOT” TARGET An optimal organization must target and activate against the manufacturer/retailer/ shopper “Sweet Spot” with minimal friction. Validate your “Sweet Spot” or common ground across the who, what, why, when, where and how questions. Ask the questions as your shoppers/consumers and retailers would. MANUFACTURER RETAILER SHOPPER/CONSUMER SWEET SPOT WHO: Everyone – all potential buyers WHAT: Reason to buy brand WHY: Build our brand WHEN: Any time WHERE: Anywhere HOW: Manufacturer controlled levers WHO: Customized for me WHAT: Relevant to me WHY: Save me money; solve my problems WHEN: I have a need or want WHERE: Everywhere I am HOW: Levers I control WHO: Everyone – all my shoppers WHAT: Reason to shop/buy at my store WHY: Build my category/store WHEN: In my store – ready to buy WHERE: Within my sphere of influence HOW: In-store/retail levers Target
  29. 29. Industry Shopper Study2015 ACTION PLAN
  30. 30. – 30 – 2015Industry Shopper Study ACTION PLAN: SEIZE THE “MOMENTS THAT MATTER” 1. Identify: The Moments that Matter. • Consumers: Need states or occasions • Shoppers: Points of influence which will vary by category, time of year, etc. • Channels/Retailers: Why and where do shoppers go for both insight and purchase? 2. Segment for Success: Not all Moments are created equal for your brand and category. • Identify brand strengths/opportunities • Identify category strengths/opportunities • View through shopper/retailer lenses and quantify 3. Target: It’s all marketing. Target your marketing dollars not along a regimented Path to Purchase that few shoppers actually travel, but against the Moments that Matter to drive increased success for your organization. Identify: • Consumers: What are those need states and occasions by category, by time of year? • Shoppers: What points of influence really matter and how can you best target the shopper? • Channels/Retailers: Why and when are they chosen? 4. Organize to Implement: Reorient your organization and marketing focus against Moments that Matter. • Develop an outside-in structure oriented with the shopper/consumer at the center • Streamline for success with an integrated marketing organization • Place digital/omni-channel at the “head” of your organization and the consumer/shopper at the “heart” DIGITAL/ OMNI-CHANNEL CONSUMER/ SHOPPER PRESIDENT SALES CATEGORY LEADERSHIP MARKETING INSIGHTS • Revenue management • Trade promotion • Net sales • Online • Mobile • Integration • Demand generation • Needs satisfaction • 4Ps • P&L • Category management • Shopper marketing • Consumer • Shopper • Category SHOPPER SEGMENTSHow They ShopPoint of Influence What They Want Occasion CONSUMER SEGMENTS WhereTheyGo CUSTOMERS

×